AOS1

Question 1

Sole Trader

Answer 1

A sole trader is a business structure owned and operated by a single person.

Question 2

Partnership

Answer 2

A partnership is a type of business owned by two to 20 owners.

Question 3

Private limited company

Answer 3

A private limited company is an incorporated business with at least one director and up
to 50 selected shareholders.

Question 4

Public listed company

Answer 4

A public listed company is an incorporated business that can sell shares in an open market
to an unlimited number of shareholders.

Question 5

Social enterprise

Answer 5

A social enterprise is a business that aims to make a profit and improve the community
or environment.

Question 6

Government business enterprise

Answer 6

Government business enterprise is a profit driven business that is owned by but managed
separately from the government.

Question 7

Unincorporated

Answer 7

Unincorporated is an owner and
business being viewed as a single
legal entity.

Question 8

Incorporated

Answer 8

Incorporated is a business being
established as a separate legal
entity from the owners.

Question 9

Unlimited liability

Answer 9

Unlimited liability is the complete
responsibility an owner has for a
business’s debts.

Question 10

Limited liability

Answer 10

Limited liability is the protection
of a shareholder’s personal assets
against any business debt

Question 11

Debts

Answer 11

Debts are the sums of money a
business owes to banks, suppliers
or even customers.

Question 12

Proprietor

Answer 12

Proprietor is the owner of

a business.

Question 13

Profits

Answer 13

Profits are the amount remaining
after all expenses are deducted
from a business’s income.

Question 14

Personal income tax

Answer 14

Personal income tax is a portion
of an individual’s earnings that is
paid to a government for public
services such as roads, schools
and hospitals.

Question 15

Company tax

Answer 15

Company tax is the portion of
profits a business pays to the
government for public services
such as the police, courts and
fire services.

Question 16

Director

Answer 16

Director is the manager of a
particular area of a company often
selected for their expertise.

Question 17

Shareholders

Answer 17

Shareholders are part-owners
of a business as they purchase
company shares.

Question 18

Shares

Answer 18

Shares are the units of ownership
of a business that it sells to raise
funds.

Question 19

Open market

Answer 19

Open market is a public arena
where people can buy and sell
items of commercial value freely.

Question 20

Australian Securities Exchange

Answer 20

Australian Securities Exchange
is the electronic market where
Australian public company shares
are bought and sold.

Question 21

Share price

Answer 21

Share price is the value of a single
share of a company that it can be
bought or sold for.

Question 22

Dividends

Answer 22

Dividends are regular sums of
money paid out to shareholders
from a business’s profit.

Question 23

Business objectives

Answer 23

Business objectives are the goals a business intends to achieve.

Question 24

Revenue

Answer 24

Revenue is the amount of money
a business makes from its normal
business activities.

Question 25

Expenses

Answer 25

Expenses are the costs of running | a business.

Question 26

Market share

Answer 26

Market share is a business’s percentage of total sales within an industry.

Question 27

Stakeholders

Answer 27

Stakeholders are individuals or groups that have a vested interest in the performance and activities of a business.

Question 28

Vested interest

Answer 28

Vested interest is a strong connection to a business that can lead to personal gain or benefit

Question 29

Internal stakeholders

Answer 29

``` Internal stakeholders are groups who have a direct financial share or are employed by the business including owners, board of directors, investors, shareholders and employees. ```

Question 30

External stakeholders

Answer 30

``` External stakeholders are groups that are outside a business but are concerned or affected by its activities including customers, suppliers and the general community. ```

Question 31

Ethically

Answer 31

Ethically is the alignment to | current moral standards.

Question 32

Wages

Answer 32

``` Wages are regular payments of money earned by employees for work or services completed, typically paid on a weekly or monthly basis. ```

Question 33

Conditions

Answer 33

``` Conditions are the terms that an employee and employer agree to including job responsibilities, hours of work, dress code and leave entitlements. ```

Question 34

Corporate social responsibility (CSR)

Answer 34

Corporate social responsibility (CSR) is the ethical conduct of a business beyond legal obligations to improve the social, economic and environmental outcomes of stakeholders.

Question 35

Operations

Answer 35

Operations as an area of management produces the goods or services that a business sells to customers.

Question 36

Human resources

Answer 36

Human resources as an area of management establishes and manages the relationship the business has with its employees, including their hiring, training and termination

Question 37

Sales and marketing as an area of management

Answer 37

Sales and marketing as an area of management promotes and sells the business’s goods or services to customers.

Question 38

Finance as an area of management

Answer 38

Finance as an area of management handles the monetary requirements of a business.

Question 39

Technology support as an area of management

Answer 39

Technology support as an area of management installs automated equipment, machinery and devices within the business and provides assistance to employees on the use of these technologies

Question 40

Corporate culture

Answer 40

Corporate culture is the shared values and behaviours practised by managers and employees within a business

Question 41

Official corporate culture

Answer 41

Official corporate culture is the shared values and beliefs desired by a business and expressed through elements such as formal rules and symbols.

Question 42

Real corporate culture

Answer 42

Real corporate culture is the shared values and behaviours that are actually practised by employees and managers and expressed through informal rules and habits.

Question 43

Policies

Answer 43

Policies are the formal and written | rules of a business.

Question 44

Mission statement

Answer 44

Mission statement is a formal summary of the core focus of a business apart from profit.

Question 45

Vision statement

Answer 45

Vision statement is a formal summary of a business’s longer term objective.

Question 46

Rituals

Answer 46

Rituals are practices within a business that occur regularly.

Question 47

Communication flow

Answer 47

Communication flow is the direction of the transfer of information between managers and employees.

Question 48

Decision making

Answer 48

Decision making is deciding a course of action for a business from a set of alternatives.

Question 49

Centralised control

Answer 49

Centralised control is one person having concentrated authority to make decisions.

Question 50

An autocratic management style

Answer 50

An autocratic management style is a manager making decisions and directing employees without any input from them.

Question 51

A persuasive management style

Answer 51

A persuasive management style is a manager making decisions and communicating the reasons for those decisions to employees without their input.

Question 52

A consultative management style

Answer 52

A consultative management style is a manager seeking input from employees on business decisions but making the final decision themselves.

Question 53

A laissez-faire management style

Answer 53

A laissez-faire management style is a manager communicating business objectives to employees and allowing them to make decisions independently.

Question 54

Planning

Answer 54

Planning is the manager’s ability to establish objectives and strategies to achieve them.

Question 55

Decision-making

Answer 55

Decision-making is the manager’s ability to determine a suitable course of action for the business from a range of alternatives.

Question 56

Communicating

Answer 56

Communicating is the manager’s ability to clearly exchange information with employees and relevant stakeholders.

Question 57

Delegating

Answer 57

Delegating is the manager transferring authority and responsibility to employees for business tasks.

Question 58

Interpersonal skills

Answer 58

Interpersonal skills is the manager’s ability to interact positively with employees to create and maintain professional relationships.

Question 59

Leading

Answer 59

Leading is the manager’s ability to motivate employees to work towards business objectives.

Question 60

A franchise

Answer 60

``` A franchise is a business model that licenses the business’s name, product and procedures to people outside the business, also known as franchisees. Franchisees pay a fee to the business in return for an established brand, proven business methods and a loyal customer base. ```

Question 61

Franchisees

Answer 61

``` Franchisees are individuals who become business owners by purchasing the right to trade using another established business’s brand, products and processes ```